The Dubai Electricity and Water Authority (DEWA) signed a Power Purchase Agreement and a Shareholder Agreement with ACWA Power. Part of the second phase of construction at the Mohammed bin Rashid Al Maktoum Solar Park, the TSK-led consortium will build and operate a 200MW photovoltaic solar power plant.
The agreements were signed by HE Saeed Mohammed Al Tayer, managing director and CEO of Dubai Electricity and Water Authority (DEWA) and Mohammed A. Abunayyan, chairman of ACWA Power.
“The PPA agreement supports the Dubai Integrated Energy Strategy 2030 developed by the Dubai Supreme Council of Energy to diversify Dubai’s energy mix. Solar energy will account for 7% of the total energy production by 2020 and 15% by 2030,” comments Al Tayer.
Based on the Independent Power Produce model, the second phase of the project is set to launch by April 2017. Occupying 450 hectares, the central focus of the Mohammed bin Rashid Al Maktoum Solar Park is to reduce carbon emissions in Dubai by 400,000 tonnes.
“ACWA Power will finance, build and operate 200 MW photovoltaic plant at the Mohammed bin Rashid Al Maktoum Solar Park and will receive a 25-year PPA starting in 2017,” shares Abunayyan.
He adds: “This plant also sets a worldwide milestone for utility-scale solar power generation with a landmark level tariff of $5.84 cents/kWh.”
ACWA Power was previously awarded the preferred-bidder status on 15 January 2015, based on a level tariff. The standard is a global benchmark for utility-scale solar photovoltaic power plants.